New AI system improves warehouse operations

Ceva Logistics is partnering with Google to use artificial intelligence (AI) to improve the operation of its 10.4 million square metres of warehouse space.

A major challenge to warehouses that process orders is that markets fluctuate, especially in retail industries that have seasonal demand peaks. Ideally, a warehouse needs to be able to respond to the highs and lows of demand levels.

Ceva Logistics is using Google’s artificial intelligence to enhance its planning processes by predicting demand and inventory fluctuations and implementing adaptable strategies. The objective is to deliver faster and better customer service.

The company also offers shipping services. Artificial intelligence is used here to optimize vessel routes, container handling and inventory levels in the warehouse. AI also aids in reducing operational expenses and the company’s environmental impact.

Rodolphe Saadé the chairman of Ceva Logistics’ parent company, CMA GGM said:

“Together with Google, we will lead the digital revolution in shipping, logistics and media, optimize our processes, and enhance our competitive edge. We are committed to driving innovation with tangible benefits for our staff members and our customers.”

The Chief Executive of Google, Sundar Pichai, said that this partnership is an example of how AI revolutionises industries.

Fully automated warehouses are expensive and beyond the budget of many small to medium-sized businesses. A more cost-effective solution to making warehouses more efficient is to retain the human workers who pick order items with storage trolleys, but use AI systems to better organise order processing systems and inventory management.

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